The former prime minister has become Foreign Secretary, with a seat in the Lords, as Mr Sunak risked a row with the Tory right after sacking controversial home secretary Suella Braverman.
Lord Cameron said he wanted to be "part of the strongest possible team" that "can be presented to the country when the general election is held".
James Cleverly shifted from the Foreign Office to replace Mrs Braverman as Home Secretary.
Lord Cameron's appointment was a massive shock in Westminster, not just because of the return of a former prime minister to government - the first since Alec Douglas-Home in the 1970s - but also because of his views on China.
During the Cameron administration there was a "golden era" of UK-China co-operation, something Mr Sunak described as "naive" last year following growing tensions with Beijing.
Lord Cameron has also been critical of Mr Sunak's decision to scrap the northern leg of HS2, while the Prime Minister used his Tory conference speech to distance himself from the legacy of his predecessors.
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